Higher Ed Policy Roundup: Vol. 8 - Issue 29

On Tuesday, seven states filed a preliminary lawsuit against the Education Department (ED) over a forthcoming debt relief program that has not yet been finalized. The student loan forgiveness plan, which was proposed in April and would take effect this fall, would permit debt forgiveness waivers for borrowers who:

• Owe more than they did when their loans first entered repayment;
• First entered repayment either 20 or 25 years ago;
• Are eligible for loan forgiveness but have not yet applied; and
• Are enrolled in low-financial-value programs.

Though lawsuits are typically restricted from being filled on proposed rules, the plaintiffs claim that ED has been directing loan servicers to begin cancelling student loans before the rule is finalized. On Thursday, a U.S. District Court judge in Georgia issued a temporary restraining order in the case, blocking implementation of loan forgiveness under the rule, pending a September 18 hearing.  

In a recent poll from Sallie Mae, 29% of respondents indicated the updated Free Application for Federal Student Aid (FAFSA) was easier to complete than the former version.

The Congressional Research Service released a report summarizing the Higher Education Act federal student loan programs affected by COVID-19 pandemic-related relief efforts by lawmakers and the Department of Education.

The Center for American Progress published an interactive tracker that quantifies the Biden-Harris Administration’s student loan debt relief by program.

The following bill(s) have been recently introduced for consideration by the 118th Congress (2023-2024):

H.R. 9441 – Student Loan Interest Cap Act [Rep. Jared Moskowitz (D-FL-23)] would establish a three percent cap on the interest rates of federal student loans.